Lancashire Investors - LRE

Lancashire Investors - LRE

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Lancashire Holdings Limited LRE London Ordinary Share BMG5361W1047 COM SHS USD0.50
  Price Change Price Change % Stock Price Last Trade
-2.50 -0.38% 663.00 16:35:16
Open Price Low Price High Price Close Price Previous Close
672.00 660.50 672.00 663.00 665.50
more quote information »
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Top Investor Posts

johnroger: Lancashire Holdings Limited ("Lancashire" or "the Company") will be releasing its 2019 third quarter trading statement at 7:00am UK time on Thursday 7 November 2019 and hosting an analyst and investor conference call at 1:00pm UK time / 8:00am EST on Thursday 7 November 2019. The conference call will be hosted by Lancashire management.
johnroger: Lancashire Holdings Limited ("Lancashire" or "the Company") will be announcing its 2019 second quarter results at 7:00am UK time on Thursday 25 July 2019 and hosting an analyst and investor conference call at 1:00pm UK time / 8:00am EDT on Thursday 25 July 2019. The conference call will be hosted by Lancashire management.
jrphoenixw2: Does anyone have the FX rate that'll be applied to the latest div [x-ref Speeds post 1353] ? It always surprises me how damned opaque such things are on the LRE/Investors webpages [to be clear: their own website section for investors] - It still appears to be unpublished on their own website > hxxps://
jrphoenixw2: Note to self for future reference: Per 1324/13-Mar^ 'Just going on the FX chart of Google/Finance I'm estimating the rate was circa 1.397, so looking for circa US0.10/1.397=7.16p' My broker paid out at 7.15077p. I still don't know if that is correct, and they've got it wrong before. Meanwhile the LRE website STILL shows '$0.10 (or approximately £0.07151)' hxxps:// So it seems you can estimate the converted div closely by taking the GBP/US$ rate from Google/Finance at noon on the record date, versus, the LRE site which even weeks later still doesn't publish what the actual rate was.
speedsgh: From LRE website...HTTPS:// On 14 February 2018 a final dividend of $0.10 (or approximately £0.07151) per common share was declared. The dividend will be paid in Pounds Sterling on 21 March 2018 to shareholders of record on 23 February 2018.
jrphoenixw2: I think it highlights how smaller investors should approach shares that pay Specials [SDs]. IME there is a wide variance across companies on how dependable such divs might be. It is a simple oversight to do a sift of a sector or index, see a juicy yield including SDs and misjudge the future security of it; I did it myself, my position used to be 4x the size of what I hold now. I only chopped the holding down as I'm in the final preparatory steps pre early-retirement, and have been de-risking/diversifying my portfolio these past 6-9 months. Not suggesting I'm clever or similar, rather in hindsight I was clearly being foolish, and it was my wife's nagging re: risk and pending retirement that forced my hand. Sobering to say the least... p.s. don't see any point at all selling out now, odds on the damage is done.
pogue: speedsgh I too am mainly an income investor but am trying now to rotate my LTBH shares a bit to protect gains and increase income not an easy combo. Here I see an oportunity to reinvest money elsewhere for a better return for the next year or so, if the special dividend had held then I would stay regardless of the share price. This RNS has highlighted to me what I actually knew, its cyclic share and divi, and has sparked me into action. Good luck with the long term hold here it will pay off I am sure I'll buy back at a later point.
speedsgh: pogue - Thanks for your post #1300. Interesting to hear your perspective and fully understand your position. I suppose a lot will depend on individual investment styles. When I buy, I tend to stick with it for the long long run unless the investment story changes fundamentally. I have been expecting a drought in the special dividend payments for some time. The company has been flagging for 2-3yrs that this would inevitably happen at some point when the benign period for catastrophes ended and the consequent stresses caused by this created opportunities for the company where they would be able to more efficiently deploy the previously under-utilised capital that in recent years has been returned to shareholders via special payments. This in turn should lead to greater profits, a higher share price and potentially greater distributions further down the line. In assessing the return from my LRE investment, and in particular the income, I tend to average out the disributions over a 5yr+ period; this evens out those years with whopping special distributions against those with none. In my own case the average return is more than satisfactory (I try not to be too greedy) but for each it will of course depend on the average price paid in the first place. I am also painfully aware that, whilst being predominantly an income investor, I am notoriously poor at trying to time selling equities in order to get back in lower further down the line. As a result I generally prefer to stay invested and hopefully average down if any opportunity presents itself. It's just what works for me. Others will naturally prefer very different methods which I completely understand.
jrphoenixw2: Transcript of their analysts call, typos, audio problems and all: Nice to hear their confidence. They reiterate they expect renewal rates/ margins to begin improving from the start of 2018, and in Jun-18 they'll re-assess whether the sufficient profitable opportunity continues, to justify a capital raise to write more cover. I infer if they're capital raising that makes Specials, that come from 'excess capital', unlikely. Perhaps the share price, vs the potential for a Special, is going to be the focus for investors well into 2018.
garycook: Although insurance businesses aren’t always easy for investors to understand, in my experience they can be very profitable investments. Today I want to look at two dividend stocks in the insurance sector, one of which I own myself — and both of which are owned by top fund manager Neil Woodford. The specialist choice Lancashire Holdings Limited (LSE: LRE) is a specialist insurer which provides insurance against assets such as aircraft, ships and oil rigs. This year’s damaging hurricane season has brought to an end a run of quiet years without major payouts. The group’s return on equity for the third quarter has fallen to -10.4%, from +3.1% during the same period last year. These losses aren’t unexpected. The group’s loss estimate of $106m-$212m is described as “comfortably within our expectations” by chief executive Alex Maloney. For shareholders, there’s good news and bad. In the short term, the bad news is that the bumper special dividends paid in recent years will be stopped. Management believes that market conditions in 2018 will allow it to put fresh capital to work, so it won’t be returning spare cash to shareholders. This means that the dividend yields of 7-10% enjoyed by shareholders will come to an end for now, at least. Instead, shareholders will get Lancashire’s ordinary dividend, which gives a yield of about 1.5% at current prices. The good news is that the company believes that this year’s string of major catastrophes mean that insurance rates are likely to rise. Rivals who have been under-pricing risk could run into problems and securing higher rates now should support profit and dividend growth in the future. During the years I’ve been following this company, management commentary has always been consistent and accurate. I’m not surprised that Lancashire shares have risen by 20% since late September and investors are pricing in a more profitable future. I suspect we may get a chance to buy the shares more cheaply when market enthusiasm calms a little. In any case, I rate this stock highly as a quality business.
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